Guwahati: The Ministry of Ports, Shipping and Waterways (MoPSW) has ordered all major ports to immediately cease charging the Ro-Pax/Passenger Ferries any berth renting or vessel-related fees for the upcoming six months.
This has been done to provide this industry a little reprieve from the effects of the worldwide increase in fuel prices.
Additionally, MoPSW has asked all states to reduce their HSD-based VAT rates to match those utilised by this industry.
Low Sulfur, High Flash High-Speed Diesel (LSHFHSD) for marine use now costs Rs. 1,21,000 per KL as opposed to Rs. 76,000 per KL. The price of "Very Low Sulphur Fuel Oil" (VLSFO) has also gone up, going from Rs. 40608/KL to Rs. 80917/KL. It should be mentioned that the price of marine fuel (LSHFHSD) used to be 10-15% less expensive than retail diesel (HSD) at the beginning of FY 2021–2022. Consequently, the increase is actually greater than 40%.
According to Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal, local Ro-Pax and passenger ferry operations are no longer financially viable due to the rising cost of fuel on a global scale, so the MoPSW's exemption of vessel and port-related fees will give this industry the necessary respite for the following six months.
In order to provide this sector the help it needs in the current environment, he added, "We have also encouraged MoPNG to consider reducing Fuel costs and Ministry of Finance to cut the related taxes on it."
The Ro-Ro/Ro-Pax/Ferry waterway transportation is being promoted by MoPSW because it transports freight with fewer emissions per unit of weight than other modes of transportation. Additionally, there are considerable time and money savings as compared to the conventional forms of transportation.
Additionally, there may be a decrease in noise pollution, traffic accidents, and congestion on the roads and trains. Such a water-based transportation service is a practical way to save logistical costs, shorten travel distances, and encourage coastal trade over a number of viable routes.
In this regard, he had also sent letters to Nirmala Sitharaman, Union Minister for the Ministry of Finance and Corporate Affairs, and to Hardeep Singh Puri, Union Minister for the Ministry of Petroleum and Natural Gas, highlighting the problem and requesting that they show their support for this industry by, respectively, lowering taxes and fuel prices.
It is important to note that the cost of marine fuel, including taxes, has an impact on the entire value chain of the mass surface water transportation system and ecosystem. Ferry operators are unable to pass this cost onto the general public, who can use other government-subsidized public transportation options like rail or road. These administrative obstacles will ultimately serve as a roadblock in developing the nation's fledgling surface water transportation ecology.
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